Tax plan pushed back in response to attacks

INDIANAPOLIS -- The lieutenant governor's efforts to craft a tax restructuring plan have been pushed back, partly because of scheduling problems that occurred after this month's terrorist attacks.\nLt. Gov. Joe Kernan had hoped to present a plan by late this month, but it could be the middle of October before it is ready, spokeswoman Tina Dennis said Monday.\n"We have delayed release of the plan more because of the unexpected events of the past couple of weeks more than anything else," Dennis said. "It was more of the technical aspects, not being able to get together ... and not being able to share ideas."\nRegardless, legislators still seem to have little desire to consider restructuring during a special session yet this year, or even extending the Nov. 20 organization day beyond one day -- something Kernan and Democratic Gov. Frank O'Bannon at least have contemplated.\nRep. B. Patrick Bauer, longtime chairman of the tax- and budget-writing House Ways and Means Committee, said lawmakers must first take up the state's widening budget shortfall before overall tax restructuring is considered. The regular short session begins in January.\n"There is no need for a special session, because that is what this annual session is," Bauer, D-South Bend, said Monday. "It is a session defined for emergencies. I believe restructuring will have to be done eventually, but hopefully it can be done subsequently (to addressing the budget shortfall)."\nKernan has been meeting with a close-knit group of budget officials and others in hopes of devising a revenue-neutral restructuring plan to soften the financial hit homeowners are expected to take after next year's statewide property tax reassessment.\nRegulations have been overhauled to meet a state tax court mandate that assessments of real property -- factories, homes and other buildings -- be based on objective, verifiable data. New rules for personal property, which includes business inventory and equipment, also have been drafted.\nWhen combined, property tax bills on homeowners are expected to increase an average of 13.1 percent. That's up from about 6.5 percent the State Board of Tax Commissioners had projected before it revamped its personal property tax guidelines.\n"I criticized the state tax board for doubling the deal on homeowners," Bauer said. "That makes the job of restructuring doubly difficult. It makes (Kernan's) job worse, and it makes the General Assembly's job worse."\nDennis said Kernan has a legislative team that's been working with lawmakers since the process of trying to craft a restructuring plan began several weeks ago. The meetings are getting mixed reviews.\nSen. Tom Wyss, R-Fort Wayne, said he recently met with Kernan assistant Bill Stuart.